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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Bankruptcy Question Posted by jom on July 17, 2003 at 9:04 AM Here's a situation a friend is in: Original owner is in trouble with some missing payments on their mortgage. My friend steps in and makes up back payments, takes property subject to mortgage and gets deed. Owner moves out. No problem. My friend then assigns "or flips" house to another investor to clean up and rehab. This investor finishes the small rehab, puts it on the market and it sells. While in escrow the title company finds out that the original owner is in bankruptcy so they can't issue clear title. So now this investor is upset at my friend because of this. My question is why isn't this clear title? Does it matter when the original owner went into BK? If so, what are the differences if he BK'd before and after he originally sold the property to my friend? Thanks jom Follow Ups: Sale of assets prior to filing bankruptcy. Ward-CA- 10:50 PM, 07/17/03 (4) How do you prevent....? jom 8:57 AM, 07/18/03 (3) Re: How do you prevent....? Michael 10:23 AM, 07/18/03 (2) Re: How do you prevent....? jom 10:26 AM, 07/18/03 (1) Re: How do you prevent....? Michael 10:52 AM, 07/18/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Here's a situation a friend is in: : Original owner is in trouble with some missing payments on their mortgage. My friend steps in and makes up back payments, takes property subject to mortgage and gets deed. Owner moves out. No problem. : My friend then assigns "or flips" house to another investor to clean up and rehab. This investor finishes the small rehab, puts it on the market and it sells. While in escrow the title company finds out that the original owner is in bankruptcy so they can't issue clear title. So now this investor is upset at my friend because of this. : My question is why isn't this clear title? Does it matter when the original owner went into BK? If so, what are the differences if he BK'd before and after he originally sold the property to my friend? : Thanks : jom Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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